Digital assets infrastructure startup Fuze raises $12.2 million from Galaxy, e&, others

Digital assets infrastructure startup Fuze has raised $12.2 million in a Series A funding round led by Galaxy, a global digital assets and infrastructure firm, and e&, a UAE-based telecommunications company.

The startup plans to use the capital to expand into new markets—including India—accelerate product development, and hire senior talent.

Founded in 2023 by Arpit Mehta, Srijan R Shetty, and Mo Ali Yusuf, Fuze offers a Digital-Assets-as-a-Service platform that enables banks, fintechs, and traditional enterprises to integrate regulated digital asset products, such as stablecoins, cryptocurrencies, central bank digital currencies (CBDCs), and tokenised assets, into their services.


“In four to five years, all the companies will have some part of their business being run on crypto or stablecoins… With banks and fintechs, we provide a fully regulated infrastructure, which includes wallets, liquidity, compliance licences—everything is on us. Banks and fintechs, on the front end, can launch different crypto products,” Mehta told ET.

Fuze is currently in discussions with Indian regulators and policymakers as it explores entry into the country.

“In India, we are waiting for a clean regulatory framework. We have been actively speaking to the government, policymakers, and regulators to understand their thought processes. India is a huge market, but as a regulatory-conservative company, we always look forward to getting full clarity,” Mehta added.

The company operates in the Middle East and North Africa region and Turkey and has processed more than $2 billion in digital asset volume so far. In addition to its core offerings, Fuze has launched a full suite of stablecoin infrastructure products and recently announced its expansion into payments.

The startup had previously raised $14 million in 2023 in a round led by Further Ventures, with participation from US-based Liberty City Ventures.

“We are thrilled to partner with Fuze and lead this Series A round. The region is poised to become a major hub for innovation, with the UAE demonstrating a willingness to develop comprehensive regulatory frameworks for digital assets and Fuze rapidly advancing its digital assets infrastructure,” said Leon Marshall, CEO of Galaxy Europe.

The funding comes at a time when both industry participants and users in India are seeking clarity on the government’s approach to regulating virtual digital assets (VDAs). Other industry participants have previously raised concerns over the country’s stance on such assets.